The plaintiffs sought damages for breach of contract and unjust enrichment arising from development credits issued by a municipality after road construction on land previously owned by the plaintiffs.
The land was sold multiple times, and the ultimate purchaser obtained a building permit and received the development credits.
The court applied the Supreme Court of Canada’s three‑part test for unjust enrichment and found that although the defendant received a benefit and the plaintiffs suffered a corresponding deprivation, recovery should be denied.
The court concluded that the reasonable expectations of the parties defeated the claim because the defendant paid a premium for the land reflecting the credits and had no knowledge that the credits were intended for the plaintiffs.
